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PROPOSAL:

Execute Contract to Develop and Demonstrate Zero-Emission Technologies for Utility and Lawn and Garden Equipment Used in Commercial Applications

SYNOPSIS:

In January 1998, the Board approved the release of an RFP to solicit bids in the following project areas: (1) develop and demonstrate zero-emission technologies for utility and lawn and garden equipment used in commercial applications, in an amount not to exceed $350,000; and (2) develop and demonstrate low-emission, alternative fuel and zero-emission technologies for off-road equipment, in an amount not to exceed $600,000. Of the two proposals received for Project (1), Metallic Power, Inc. has been selected for award, in an amount not to exceed $350,000. At this time, deferral of an award for Project (2) is recommended to enable completion of a more thorough technical evaluation.

COMMITTEE:

Technology, April 24, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Metallic Power, Inc., in an amount not to exceed $350,000, to develop and demonstrate zero-emission utility and lawn and garden equipment used in commercial applications.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

The emissions inventory developed for the 1997 AQMP shows that, relative to the overall Basin inventory, the "Other Mobile" category, which consists of off-road vehicles, commercial boats, trains, ships, aircraft, mobile equipment, and utility equipment, is responsible for around 9 percent of VOC, 21 percent of NO_x, 18 percent of CO, and 3 percent of PM₁₀.

During FY 1996-97, the Technology Advancement office issued a program opportunity notice (PON) seeking project pre-proposals in specific areas including "Ultra-Low/Zero-Emission Commercial Lawn, Garden, or Utility Equipment" and "Alternatively Fueled On- or Off-Road Vehicles, Boats, and Miscellaneous Power Equipment." The PON resulted in pre-proposals focusing on low-emission alternative fuel internal combustion engine technologies and zero-emission technologies (e.g., batteries, fuel cells) for lawn and garden and utility equipment and off-road vehicles.

In June 1997, following a competitive solicitation, the Governing Board approved funding for a project to develop and demonstrate low-emission alternative fuel commercial lawn and garden equipment. At their January 9, 1998 meeting, the Board approved the release of RFP #9798-21, Develop and Demonstrate Zero-Emission Technologies for Utility and Lawn and Garden Equipment Used in Commercial Applications and Low-Emission, Alternative Fuel and Zero-Emission Technologies for Off-Road Equipment.

RFP #9798-21 solicited bids in the following project areas: (1) develop and demonstrate zero-emission technologies for utility and lawn and garden equipment used in commercial applications, in an amount not to exceed $350,000; and (2) develop and demonstrate low-emission, alternative fuel and zero-emission technologies for off-road equipment, in an amount not to exceed $600,000.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders were notified from the Los Angeles County MTA, and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line.

Bid Evaluation

Three proposals, consisting of two for project (1) and one for project (2), were received by the March 10, 1998 closing date. They were reviewed and evaluated according to established AQMD guidelines. The evaluation process involved two steps. First, proposals were evaluated using technical criteria. Proposals receiving scores of at least 70 out of 100 points were considered technically qualified and eligible for contract award. Next, the technically qualified proposals were evaluated using the criteria of "cost and cost per technical innovation and commercialization potential," as outlined in the RFP. Using this two-step selection process, the proposal from Metallic Power, Inc. received the highest overall score for project (1) and is recommended for award. A summary of the panel’s scoring is included as Attachment A.

The project (2) proposal from IMPCO Technologies, Inc. received a technically qualified score from the panel. However, it was discovered during the review process that IMPCO’s proposal is similar to a project currently in progress for off-road applications, as discussed later in this letter. As a result, IMPCO’s proposal is not recommended for award at this time.

Evaluation Panel

A three member RFP evaluation panel was comprised of an AQMD Air Quality Specialist and a Program Supervisor; and a CARB Air Pollution Research Specialist. The ethnic and gender composition of the panel is one Asian-Pacific Islander and two Whites; two males and one female.

Proposals

(1) Develop and Demonstrate Zero-Emission Technologies for Utility and Lawn and Garden Equipment Used in Commercial Applications

Metallic Power, Inc.’s proposal adheres to the tasks described in the RFP’s work statement and is the only proposal that satisfies the requirements of the RFP’s technical criteria. Metallic Power, teaming with The Toro Company, a major manufacturer of commercial and residential lawn and garden equipment, has proposed to develop and demonstrate utility and lawn and garden equipment powered with zinc/air batteries. Metallic Power would provide the project’s majority cost-share, and Toro would also provide direct cost-sharing for this project (see Resource Impacts).

Zinc/air batteries utilize metallic zinc pellets and oxygen, in combination with an electrolyte, to generate electricity. The reaction byproduct of this electrochemical process is zinc oxide. Metallic Power proposes to develop and demonstrate two different types of utility lawn and garden equipment which could be used in commercial applications: The equipment are as follows: (1) a Toro prototype electric riding lawnmower, designed for mowing golf course greens, powered by a 10 kilowatt (kW) zinc/air battery; and, (2) a portable power source which is capable of powering electric leafblowers and other electric lawn and garden equipment.

In addition, Metallic Power proposes to develop an innovative vending machine-size zinc regeneration/refueling unit. This regeneration unit, which would convert the zinc oxide reaction byproduct into metallic zinc pellets as well as refuel the batteries, will allow for battery refueling wherever AC electricity is available.

Metallic Power will act as prime contractor for this project, and will be responsible for producing the zinc/air batteries and regeneration/refueling unit, as well as overall project management. Metallic Power and Toro will integrate zinc/air batteries in a Toro prototype electric greensmower. Metallic Power will produce the portable power source for use with electric lawn and garden equipment.

The project is included in the Technology Advancement Plan, approved on September 12, 1997, as Project 97M5-2, "Development and Demonstration of Zero-Emission Utility Equipment." The major benefits of this project include the proof of concept for these applications of zinc/air battery technology; exposure and user acceptance of the innovative applications; the potential for increased use, and resulting emission reduction, of the demonstrated technologies through their expedited commercialization; reduced noise from the use of quiet electricity-powered lawn and garden and utility equipment; and the potential for applying the zinc/air battery and regeneration/refueling technologies to other mobile sources.

(2) Develop and Demonstrate Low-Emission, Alternative Fuel and Zero-Emission Technologies for Off-Road Equipment

The proposal from IMPCO Technologies, Inc. is responsive to the tasks outlined in the RFP and satisfies the requirements of the RFP’s technical criteria. IMPCO has proposed to develop and demonstrate an advanced three-way catalyst-equipped liquefied petroleum gas (LPG) forklift. At present, IMPCO is a leader in alternative fuel systems and components for industrial engines used in forklifts. IMPCO has proposed development of a new, state-of-the-art alternative fuel management system based on its proven technology with many new features such as electronic controls and a three-way catalytic converter, to be demonstrated in forklift application along with exhaust emissions testing.

As briefly discussed previously, it was discovered during the review process that IMPCO’s proposal is similar to a project to demonstrate three-way catalyst technology in off-road applications, currently underway at Southwest Research Institute (SwRI). The off-road applications under consideration include industrial engines used in forklifts. At present, it is likely that SwRI will utilize an IMPCO LPG system in conjunction with a three-way catalyst in a forklift application, as one of several equipment conversions under this project. The SwRI project is being sponsored by the ARB with AQMD co-funding.

Although IMPCO’s proposed project would possibly improve the state-of-the-art for LPG forklift conversions, the work underway at SwRI is similar enough to raise concerns regarding duplication of effort. Also, given the relatively short history of ARB and EPA regulations for off-road mobile sources, as well as an overall lesser AQMD research emphasis to date on off-road mobile sources, it may be prudent not to focus additional resources on projects related to LPG forklifts at the expense of other off-road equipment such as alternative fuel construction and farm equipment.

At this point, because IMPCO’s proposal meets the RFP’s technical qualifications, it is eligible for consideration of award. However, until the work at SwRI is further along, it is impossible to assess whether IMPCO’s proposal would provide benefit to the AQMD beyond what will be achieved under the SwRI contract. A more thorough technical evaluation of this issue is needed. If the results from the SwRI contract indicate that the work currently proposed by IMPCO would be beneficial, a recommendation for award to IMPCO could be considered. As an alternative, it may be reasonable to consider an entirely new solicitation (e.g., program opportunity notice, RFP) in the area of zero-emission and low-emission alternative fuel technologies for specific off-road categories, such as construction and farm equipment.

Resource Impacts Total cost for project (1) is $924,700. The breakdown of the cosponsors and estimated support is as follows:

As a condition to be met prior to contract execution, Metallic Power, Inc. will be required to provide documentation substantiating its financial capability to provide its $510,000 cost-share, accompanied by a signed letter committing these funds exclusively to this project. Sufficient funds are available in the FY 1997-98 Budget from revenues received from the state-mandated Clean Fuels Program. This project is to be funded from the FY 1997-98 Budget. In the event technical or other delays prevent the timely execution of a contract, the project is to be funded from the FY 1998-99 Budget, upon Board approval of the budget. The Clean Fuels Program, under Health and Safety Code 40448.5 and 40512 and Vehicle Code 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

Attachment

A - Summary of Evaluation of Responses to RFP #9798-21

Two proposals were received in response to this RFP. They were from Arias Research Associates, Inc. (ARA) and Metallic Power, Inc. (MP).

Step 1 - Technical Criteria (70 points minimum, 100 points maximum)

	Proposer
	ARA	MP
Panel Average	65.7	74.3
Carry-over (50% of points > 70)	Not Qualif.	2.2

Step 2 - Cost and Other Factors (85 points maximum)

Criteria

Proposer

	ARA	MP
Cost (Maximum = 20 points for lowest cost) (Actual amount)	N/A	20 ($350,000)
Cost per Technical Approach and Work Statement (Maximum = 45)	N/A	45
Co-Funding / Matching Funds (Maximum = 10)	N/A	10
Certified Disabled Veteran-Owned Enterprise (Maximum = 10)	N/A	0
Total	N/A	75

Total Score (100 points maximum)

Criteria

Proposer

	ARA	MP
Step 1 Carry-over Points (Maximum = 15)	N/A	2.2
Step 2 Points (Maximum = 85)	N/A	75
Total	N/A	77.2

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